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Strategic Intergenerational Bequests with Stochastic Convex Production

Author

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  • AMIR , Rabah

    (Department of Economics, University of Dortmund, FRG and CORE, Université catholique de Louvain)

Abstract

This note reconsiders the well-known model of strategic bequest / altruistic growth, but with stochastic production satisfying a strong convexity condition. Existence of a Markov-stationary equilibrium consumption schedule, which is continuous and with all slopes in [0,1]' is established. Under smooth data and interiority assumptions, this schedule is differentiable, and marginal consumption is in (0,1).

Suggested Citation

  • AMIR , Rabah, 1994. "Strategic Intergenerational Bequests with Stochastic Convex Production," CORE Discussion Papers 1994025, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  • Handle: RePEc:cor:louvco:1994025
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    Cited by:

    1. Balbus, Łukasz & Reffett, Kevin & Woźny, Łukasz, 2013. "A constructive geometrical approach to the uniqueness of Markov stationary equilibrium in stochastic games of intergenerational altruism," Journal of Economic Dynamics and Control, Elsevier, vol. 37(5), pages 1019-1039.
    2. Ricardo Josa-Fombellida & Juan Rincón-Zapatero, 2015. "Euler–Lagrange equations of stochastic differential games: application to a game of a productive asset," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 59(1), pages 61-108, May.
    3. Edward C. Prescott & Kevin L. Reffett, 2016. "Preface: Special Issue on Dynamic Games in Macroeconomics," Dynamic Games and Applications, Springer, vol. 6(2), pages 157-160, June.
    4. AMIR, Rabah, 2001. "Stochastic games in economics: the lattice-theoretic approach," CORE Discussion Papers 2001059, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    5. Łukasz Balbus & Kevin Reffett & Łukasz Woźny, 2013. "Markov Stationary Equilibria in Stochastic Supermodular Games with Imperfect Private and Public Information," Dynamic Games and Applications, Springer, vol. 3(2), pages 187-206, June.
    6. Jaśkiewicz, Anna & Nowak, Andrzej S., 2014. "Stationary Markov perfect equilibria in risk sensitive stochastic overlapping generations models," Journal of Economic Theory, Elsevier, vol. 151(C), pages 411-447.
    7. Balbus, Łukasz & Reffett, Kevin & Woźny, Łukasz, 2012. "Stationary Markovian equilibrium in altruistic stochastic OLG models with limited commitment," Journal of Mathematical Economics, Elsevier, vol. 48(2), pages 115-132.
    8. Balbus, Łukasz & Jaśkiewicz, Anna & Nowak, Andrzej S., 2016. "Non-paternalistic intergenerational altruism revisited," Journal of Mathematical Economics, Elsevier, vol. 63(C), pages 27-33.
    9. Wozny Lukasz & Growiec Jakub, 2012. "Intergenerational Interactions in Human Capital Accumulation," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 12(1), pages 1-47, June.
    10. Łukasz Balbus & Kevin Reffett & Łukasz Woźny, 2015. "Time consistent Markov policies in dynamic economies with quasi-hyperbolic consumers," International Journal of Game Theory, Springer;Game Theory Society, vol. 44(1), pages 83-112, February.
    11. Amir, Rabah & Lazzati, Natalia, 2016. "Endogenous information acquisition in Bayesian games with strategic complementarities," Journal of Economic Theory, Elsevier, vol. 163(C), pages 684-698.
    12. Balbus, Łukasz & Jaśkiewicz, Anna & Nowak, Andrzej S., 2015. "Stochastic bequest games," Games and Economic Behavior, Elsevier, vol. 90(C), pages 247-256.

    More about this item

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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